Summary of Key Points Core Viewpoint - China State Construction International (03311.HK) announced that unclaimed dividends will be forfeited and returned to the company on September 8, 2025 [1] Dividend Details - The following unclaimed dividends are subject to forfeiture: - 2018 Final Dividend: Declared on March 22, 2019, at HKD 0.12 per share [1] - 2019 Interim Dividend: Declared on August 23, 2019, at HKD 0.16 per share [1]

沒收未領取的股息 根據中國建築國際集團有限公司（「本公司」）《組織章程細則》的規定，凡在宣派股息 日期起計六年後仍未領取的所有股息可被沒收及撥歸本公司所有。本公司董事局（「董事 局」）謹此通知本公司股東，以下仍未領取的股息將於二零二五年九月八日予以沒收及撥 歸本公司所有: | 股息類別 | 宣派股息日期 | 每股股息 | | | | --- | --- | --- | --- | --- | | 二零一八年度末期股息 | 二零一九年三月二十二日 | 港幣 | 12 | 仙 | | 二零一九年度中期股息 | 二零一九年八月二十三日 | 港幣 | 16 | 仙 | 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完整性亦 不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或因倚賴該等內容而引致的任 何損失承擔任何責任。 (於開曼群島註冊成立之有限公司) (股份代號 : 3311) 承董事局命 中國建築國際集團有限公司 主席兼執行董事 張海鵬 香港，二零二五年八月二十五日 於本公告日期，董事局成員包括主席兼執行董事張海鵬先生；非執行董事顏建國先生及叶楠先生；執行董 ...

Investment Rating - The investment rating for China State Construction International (3311.HK) is "Buy" and is maintained [9]. Core Views - The company reported a revenue of RMB 56.64 billion for H1 2025, a year-on-year increase of 0.1%, and a net profit attributable to shareholders of RMB 5.26 billion, up 5.1% year-on-year [2][6]. - The slow recognition of investment income has negatively impacted performance, while technology-driven revenue growth is notable [9]. - The company aims to maintain a double-digit performance guidance for 2025, with a projected dividend yield of approximately 5.7% based on a 33% payout ratio [9]. Summary by Sections Financial Performance - In H1 2025, revenue was RMB 56.64 billion, with a 0.1% increase year-on-year; net profit was RMB 5.26 billion, reflecting a 5.1% growth [2][6]. - For Q2 2025, revenue was RMB 33.75 billion, down 2.1% year-on-year, with technology-driven revenue at RMB 15.66 billion, up 99.7%, while investment-driven revenue fell 39.6% to RMB 9.43 billion [9]. Business Segments - Technology-driven revenue reached RMB 20.54 billion in H1 2025, a significant increase of 73.4%, while investment-driven revenue was RMB 20.79 billion, down 21.5% [9]. - New contracts signed in H1 2025 totaled RMB 92.6 billion, a decline of 26.0%, but adjusted for a large order from 2024, the growth was 22.8% [9]. Regional Performance - The gross margin for the mainland region improved to 22.8%, up 2.5 percentage points year-on-year, while Hong Kong's gross margin decreased to 5.2%, down 1.9 percentage points [9]. - The company reported a cash net outflow of RMB 336 million from mainland operations, an improvement from a RMB 1.33 billion outflow the previous year, while cash inflow from Hong Kong operations was RMB 459 million, up RMB 254 million year-on-year [9]. Strategic Developments - The company is expanding its MiC (Modular Integrated Construction) business in mainland cities, achieving full coverage in first-tier cities [9]. - The Hong Kong government has increased its projected annual infrastructure spending from approximately HKD 90 billion to HKD 120 billion, providing further funding assurance for large-scale projects [9].

Core Viewpoint - China State Construction International (03311.HK) reported a slight increase in revenue and a notable rise in net profit for the first half of the year, indicating stable performance amidst market conditions [1] Financial Performance - The company's revenue for the first half of the year was approximately 56.643 billion, reflecting a year-on-year growth of 0.1% [1] - Net profit reached around 5.259 billion, showing a year-on-year increase of 5.1% [1]

Core Viewpoint - The project constructed by China State Construction Engineering Corporation's subsidiary, China State Construction Second Engineering Division, has successfully achieved full-capacity grid connection, marking a significant milestone in Yunnan's renewable energy initiatives [1] Group 1: Project Details - The photovoltaic power station project is located in the mountainous region of Kaiyuan City, Honghe Prefecture, Yunnan Province, covering an area of 2811.45 acres [1] - The project is an important component of Yunnan's "14th Five-Year Plan" for renewable energy [1] Group 2: Energy Output - Once fully connected to the grid, the project is expected to deliver an average of 191 million kilowatt-hours of green electricity annually [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 17.57 [7][5]. Core Insights - The company reported a revenue of RMB 566 billion for the first half of 2025, a year-on-year increase of 0.13%, and a net profit attributable to shareholders of RMB 52.59 billion, up 5.05% year-on-year [1]. - New contract signing for the first half of 2025 was RMB 926 billion, a decrease of 19.2% year-on-year, primarily due to a high base effect from a major project signed in the first quarter of 2024. Excluding this effect, new contracts increased by 22.8% year-on-year, indicating robust growth [1][2]. - The company has a backlog of orders amounting to RMB 3,860 billion, approximately 3.7 times its revenue for 2024, providing a solid foundation for future growth [1]. Revenue Breakdown - In the first half of 2025, the company achieved revenues of RMB 205 billion from technology-driven businesses, RMB 208 billion from investment-driven businesses, RMB 146 billion from construction, and RMB 7 billion from operations, reflecting year-on-year changes of +73%, -21%, -17%, and +17% respectively [2]. - The technology-driven segment accounted for 36% of total revenue, while investment-driven and construction segments contributed 37% and 26% respectively [2]. Profitability and Financial Health - The company’s overall gross margin was 15.06%, with a net margin of 9.28%, showing a year-on-year increase of 0.43 percentage points [3]. - The average financing cost for the first half of 2025 was 3.15%, down 0.39 percentage points year-on-year, and the debt-to-asset ratio improved to 71.6% [4]. - Operating cash flow for the first half of 2025 was RMB 1.23 billion, marking a positive cash flow for the fourth consecutive year [4]. Earnings Forecast and Valuation - The company’s net profit forecasts for 2025, 2026, and 2027 are HKD 10.31 billion, HKD 11.16 billion, and HKD 12.05 billion respectively [5]. - The report assigns a price-to-earnings ratio (PE) of 9x for 2025, reflecting an upward adjustment of the target price to HKD 17.57 from the previous HKD 15.61 [5].

Core Viewpoint - The recent leadership change at China State Construction Fourth Engineering Bureau (CSCEC Fourth Bureau) has drawn significant attention, marking a potential shift in the company's strategic direction and operational dynamics [4][8]. Group 1: Leadership Change - Zhou Sheng has been appointed as the new Party Secretary and Chairman of CSCEC Fourth Bureau, making him the youngest leader among the eight major engineering bureaus of China State Construction [1][4]. - The previous leaders, Yi Wenchuan and Ma Yijun, have stepped down due to age-related reasons, indicating a generational shift in leadership [1][4]. Group 2: Zhou Sheng's Background - Zhou Sheng has extensive experience in the construction industry, having previously managed significant projects in Algeria and served as the Deputy Secretary and General Manager of CSCEC Third Bureau [5][6]. - His proficiency in English and French has enhanced CSCEC's influence in the African market, and he has been instrumental in major project decisions and corporate transformations [6][8]. Group 3: Current Challenges and Opportunities - CSCEC Fourth Bureau is facing financial challenges, with a projected revenue of 129.515 billion RMB and a net profit of 5.84 billion RMB for 2024, reflecting a 24% year-on-year growth, but with a high debt ratio of 87% and significant liquidity pressure [7][8]. - The company's business structure is heavily skewed towards housing construction, which accounts for over 70% of its operations, limiting its presence in higher-margin sectors like infrastructure and new construction [7][8]. Group 4: Industry Context - The construction industry is undergoing significant adjustments, with state-owned enterprises like CSCEC gaining market share amid challenges faced by private firms [9][10]. - CSCEC Third Bureau's real estate brand, Zhongjian Yipin, achieved sales of 50.6 billion RMB in 2024, highlighting the competitive landscape among the various bureaus [9][10]. Group 5: Strategic Directions - Zhou Sheng's leadership is expected to bring new strategies to CSCEC Fourth Bureau, focusing on a "2+5" strategic plan and a "Southward Focus Strategy" to enhance market positioning [18][19]. - The company aims to optimize its human resources management and pursue "lean" management practices to improve project quality and operational efficiency [18][19].

Core Viewpoint - China State Construction International (03311) has announced a factoring arrangement that will provide immediate liquidity for operational and business development needs, enhancing the company's financial structure and operational capacity [1] Group 1: Factoring Arrangement Details - On August 20, 2025, China State Construction International's indirect wholly-owned subsidiary, China State Construction International Investment, entered into a factoring arrangement [1] - The arrangement includes a receivables transfer contract with Huzhou Haichuang and a factoring contract with China State Construction Commercial Factoring [1] - China State Construction Commercial Factoring will provide a principal amount of RMB 200 million at a discount rate of 92.8%, with factoring services for a period not exceeding 18 months [1] Group 2: Benefits of the Arrangement - The factoring arrangement is beneficial for the group as it provides immediate available funds for working capital and business development [1] - It allows the group to meet liquidity development needs and diversify financing channels [1] - The arrangement aims to optimize the group's asset structure, improve capital efficiency, and enhance operational capabilities [1]

Core Viewpoint - China State Construction International (03311) has announced a factoring arrangement that will provide immediate available funds for operational and business development purposes, enhancing liquidity and diversifying financing channels [1] Group 1 - The company has entered into a factoring arrangement on August 20, 2025, through its indirect wholly-owned subsidiary, China State Construction International Investment [1] - The factoring arrangement includes a receivables transfer contract with Huzhou Haichuang and a factoring contract with China State Construction Commercial Factoring [1] - China State Construction Commercial Factoring will provide a principal amount of RMB 200 million at a discount rate of 92.8%, with factoring services for a period not exceeding eighteen months [1] Group 2 - The arrangement is beneficial for the company as it allows for immediate access to funds, which can be used for working capital and business development [1] - It enables the company to meet its liquidity development needs and optimize its asset structure, improving capital efficiency and enhancing operational capabilities [1]

Core Viewpoint - China State Construction International (03311.HK) announced a factoring arrangement on August 20, 2025, involving the transfer of accounts receivable and a financing agreement with a discount rate of 92.8% [1] Group 1 - The company entered into a receivables transfer contract with Huzhou Haichuang [1] - The company established a factoring contract with China State Construction Commercial Factoring, which will provide a principal amount of RMB 200 million [1] - The factoring service will be provided for a period not exceeding eighteen months from the date of withdrawal [1]